by Guest » Thu Jul 14, 2011 07:02 pm
Our house was damaged in a tornado this spring. We had a large tree smash one side. The insurer sent out an adjustor who said he believe the damages would exceed our cap. He requested his supervisor come take a look and call out a structural engineer. The boss signed off on the engineer.
The engineer came out, walked around, used no tools, and only spent about 30 minutes on site. His report reflected his flippant attitude towards the job, failed to address several points (one being a major structural characteristic of our historic home), and doesn't come close to the real scope of the damage. The original adjustor was forced to base his claim on that report and we were issued a check for about 35% of our cap.
We explained we didn't feel this was accurate and barely covered a third of our contractor's bid. Since, we have had 4 more adjustors come through the place, 3 of which all believe the damages exceed our cap and one that refused to say either way. However once the claims are sent in for approval, they are shot down by the paper pushers because they are at odds with the original engineers report.
We are now 3 months in and have yet to see a claim amount that comes close to what our contractor believes will actually take to repair our home. The insurance company refuses to accept the report is flawed and we are at our wits end. We don't want to use a public adjustor, but we are naive to what our rights are. We are waiting on yet another adjustor's numbers at the moment, but have no illusions about how it will turn out. He will submit his claim, which will exceed our cap by 100k or more, the paper pushers will deny it and send out his supervisor, his supervisor will support his claim so they will send out another adjustor.
We keep hearing, "You can submit supplements for that", but honestly there are problems with that. First being supplements are not intended to be the bulk of the claim, which they would be in this case. Second, if we exceed our cap (which appears likely) we are out of pocket which isn't feasible. The house is only worth 150k, putting 270k into repairs might make it right again, but doesn't make financial sense.
What should we do? Hire our own engineer (which they have agreed to "look at" but will be out of our pocket & no promises)? Report them to our state's insurance commission? Threaten to sue? Demand arbitration? We never thought we'd be here in 3 months, we can't sleep, live like gypsies, my work is suffering, and can't kick this cold I've had for three weeks. Anyone been here or could at least suggest what they might do?
The engineer came out, walked around, used no tools, and only spent about 30 minutes on site. His report reflected his flippant attitude towards the job, failed to address several points (one being a major structural characteristic of our historic home), and doesn't come close to the real scope of the damage. The original adjustor was forced to base his claim on that report and we were issued a check for about 35% of our cap.
We explained we didn't feel this was accurate and barely covered a third of our contractor's bid. Since, we have had 4 more adjustors come through the place, 3 of which all believe the damages exceed our cap and one that refused to say either way. However once the claims are sent in for approval, they are shot down by the paper pushers because they are at odds with the original engineers report.
We are now 3 months in and have yet to see a claim amount that comes close to what our contractor believes will actually take to repair our home. The insurance company refuses to accept the report is flawed and we are at our wits end. We don't want to use a public adjustor, but we are naive to what our rights are. We are waiting on yet another adjustor's numbers at the moment, but have no illusions about how it will turn out. He will submit his claim, which will exceed our cap by 100k or more, the paper pushers will deny it and send out his supervisor, his supervisor will support his claim so they will send out another adjustor.
We keep hearing, "You can submit supplements for that", but honestly there are problems with that. First being supplements are not intended to be the bulk of the claim, which they would be in this case. Second, if we exceed our cap (which appears likely) we are out of pocket which isn't feasible. The house is only worth 150k, putting 270k into repairs might make it right again, but doesn't make financial sense.
What should we do? Hire our own engineer (which they have agreed to "look at" but will be out of our pocket & no promises)? Report them to our state's insurance commission? Threaten to sue? Demand arbitration? We never thought we'd be here in 3 months, we can't sleep, live like gypsies, my work is suffering, and can't kick this cold I've had for three weeks. Anyone been here or could at least suggest what they might do?
Posted: Fri Jul 15, 2011 12:23 am Post Subject:
However once the claims are sent in for approval, they are shot down by the paper pushers because they are at odds with the original engineers report.
You may want to invoke the appraisal clause since this is an issue on the extent of the damages. Refer to that portion of your policy for more specific information. Basically you have your own appraiser (could be one of those contractors) submit their information and then you both hire a 3rd party to arbitrate
Posted: Fri Jul 15, 2011 02:54 pm Post Subject:
Thank you tcope, I'll have to check out my policy to see how that works tonight.
My adjustor called again lat night to say he had a new claim worked up and would have the numbers in our hands by the end of the weekend. I'm sure it will be marginal update, but no where near where we need to be.
Posted: Fri Jul 15, 2011 03:51 pm Post Subject:
Is this an actual cash value policy and not a replacement cost policy?
Posted: Fri Jul 15, 2011 06:52 pm Post Subject:
I'm sure I understand the question, but it's a run of the mill home owners policy. The policy will cover our loss up to 235 if it's declared a total loss (which it was not). However, if we rebuild we can actually go as high as 235 + 20% (and +10% for code upgrades).
We don't dispute that the property can be repaired (anything can be repaired), however, we feel as though we could very easily exceed the 235 + 20% from what our contractor is saying. Which, would make it a total loss.
Posted: Fri Jul 15, 2011 06:57 pm Post Subject:
OK I had to look it up. Yes, it's a cash value policy if I understand correctly...
The insurer will hold depreciation until the job(s) are complete. Thus if we don't rebuild we would forfeit the deprecation for all but the demo.
The adjustor said the depreciation is based on his numbers, not our cap. So if he comes up with a claim of 300 with (for easy math) 10% dep we would be looking at 270. Which they would just cut us a check for our cap which 270 is beyond that.
Posted: Tue Jul 19, 2011 02:22 pm Post Subject:
Well we finally heard back from the insurer today, they offered another 46k which puts us at about half of what our contractors have stated we need to fix the house. I called our claims handler (voicemail) and let her know that I was formally requesting they send the engineer back out to do an another walk through. If they choose to no do so, I'd be hiring my own engineer to work up a report, and would have no choice but to file a complaint with my states insurance commission.
Beyond this, I'm not sure what to do. My contractor has also put in a call to her to state the same. I guess if they choose not to do so, my recourse will be to do the above and demand arbitration or lawyer up. Does anyone else have any advice?
Posted: Wed Jul 20, 2011 01:18 pm Post Subject:
I can't seem to fine the answer to this anywhere. If we were to invoke the appraisal clause, does that remove our rights to file supplements there after?
Posted: Wed Jul 20, 2011 03:14 pm Post Subject:
If we were to invoke the appraisal clause, does that remove our rights to file supplements there after?
and
We don't want to use a public adjustor, but we are naive to what our rights are
Stop fooling around and hire a public adjuster -- it will cost about 10% of the recovery, and you are far more likely to receive the full value of your loss (up to the policy limit).
Posted: Fri Jul 22, 2011 03:05 pm Post Subject:
Just not going to happen MaxHerr. We made the call to go it alone, and are sticking with that decision, perhaps to our folly. There is nothing about the PA system that sits well with me. I'm sure they provide a valuable service, but it's not one I'm interested in using.
Our structural engineer came through yesterday and is working up his report. He found several omissions and errors in the original report that really change the scope of the damage. Without going into detail, these errors could create a liability issue for the original engineer and if presented a copy, they would probably want to re-evaluate. Well allow me to rephrase, he stated that if an engineer in his firm came back with a report as flawed as this one, he would want an opportunity to amend before it got to the point of litigation.
So our plan is to allow the original engineer an opportunity to revise their report which would cause our insurer to "reboot" their adjustor process. If this works, fantastic, if not we still have the option of invoking our appraisal clause, with the added benefit of additional documentation.
As always, I'd welcome anyone's input on our situation (I sure wouldn't be posting here if I didn't).
Posted: Sat Jul 23, 2011 02:44 am Post Subject:
No problem. Some folks get intimidated by the insurance company's process. So if you aren't, fine. Just stick to your guns and press for what you believe is fair.
Above all, as long as you don't become unruly or argumentative or threatening (especially over the phone), you won't antagonize them and the lines of communication will remain open.
before it got to the point of litigation.
This is the only reason I was suggesting the Public Adjuster route. The PA can usually negotiate as good a settlement as any lawyer will get in a civil judgment (excluding any "punitive" damages). The difference is that the PA will take 10% and the lawyer will take 30%-40%. You'd come out ahead with the PA in such a case. That's all.
Add your comment